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What is happening with the $10,000 I contributed to the B.I.G. Co-op Ltd (Co-op) for the R&D project?
The Co-op is undertaking negotiations for a direct interest in the technology and construction of a Relocatable Biomass Processor (RBP).
Can I get back the $10,000 I contributed?
No. However in the event that the machine can not be built or the Co-op can not secure a major stake in the technology for its shareholders, the board reserves the right to make a pro rata refund less expense incurred in the project.
What is the 50 cent per tonne contribution buying me as a shareholder?
The 50 cents will buy you shares in the Co-op which remains committed to maximise the returns of the businesses of the shareholders through development of the Energy Park and other commercial ventures.
What happens if 75% of shareholders support is not reached?
The Energy Park proposal will not continue and the offers from investors in the Energy Park will disappear.
What price will I get for the 15% of cane I commit to the Co-op?
Fair market price as negotiated subject to:
1. Crop and /or juice is collected from farm
2. Crop and /or juice collected from the farm is paid in full in 28 days
3. In exchange for the five year commitment the shareholder receives a stake in the Energy Park development through the Co-op.
What will happen to the fibre when the juice is taken from my cane at my farm?
There are a number of options but primarily the fibre would be returned to the soil as an ameliorant. The Co-op in time will seek to value add through the successful development of ethanol from bagasse technology or niche marketing in similar stockfeed.
Who will collect the juice if I am not near the Energy Park?
The Co-op will turn up to your farm with a RBP and collect the juice.
Why build the first Energy Park in Leichardt
To eliminate direct competition with CSR.
How do I supply cane to the Energy Park when I have signed for three years with CSR?
IF you are close to 1 of 4 Energy Parks the Co-op would receive all product, separate the cane billet from the trash and then forward the cane on to CSR. If you are outside of the Energy Park operating zone, a small amount of nominated ground can either be ratooned or placed into a rotation of giant sweet sorghum (juice for ethanol) and bean crop prior to returning to cane.
What cut to crush delay applies when supplying cane billets through the Co-op to CSR?
The existing time taken in current operations will remain virtually unchanged.
What is involved in the separation process?
Existing technology known as the Trummel Separation system would be used.
Will the separation process damage the cane resulting in lower CCS?
No.
What price is paid for the juice?
CCS still applies however due to the low fibre content of the juice; the CCS value will average approximately 4 units higher.
What price will be paid for the fibre?
What is negotiated by the Co-op on your behalf.
Who will cut the cane that is being supplied to the Energy Park?
The Co-op would co-ordinate the harvest and transport of the cane and juice supplied to the Energy Park.
What will be the cost of harvesting the cane for the Energy Park?
As negotiated between the Co-op and the shareholder as part of the fair market price to collect cane from the farm.
What if I sell my farm?
All commitments to supply are terminated and the rules of the Co-op as to who can be a member and take ownership of shares will apply.
What if I lease my farm?
As in the CANEGROWERS Burdekin Limited supply agreement, Opt in and Opt out provisions would apply.
What am I getting shares in?
If you contribute to the IBP ($10,000) you will gain shares in that specific technology. IF you contribute the 50 cents per tonne for 5 years you will receive one $1 share for every $2 contributed in the co-op which would be underpinned by land to establish the Energy Park and commercial business operations. The balance is used for feasibilities to add value to the land and support the major 5 year mapping programme.
When can I expect a return on the shares?
Approximately 3 year’s time, however some services would be offered immediately at preferential prices.
When will the Energy Park operation begin?
Late 2007 for electricity production
Can I use my existing harvester to supply to the Energy Park?
If you are a grower located near the Energy Park you can use your existing harvester except the fans and topper would be turned off. The Co-op will provide the transport for the product from the paddock.
Who is building the Energy Park?
A joint Venture primarily between Renewable Energy Australia (REA) and the Co-op.
What is the expected saving for the shareholders?
A target of $6 per tonne in cost reduction is expected by reducing the harvesting and mill cost associated with current production methods by 2008.
Why do we need REA and Austfield Technologies?
REA has the licence for the furnace technology and Austfield Technologies is the provider for the juice extraction.
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